Bankinter to lower fixed and mixed-rate mortgage conditions for the third time this year

Bankinter has decided to lower both fixed and mixed interest rates on its mortgages again in order to offer customers the best terms for this type of loans. For the third time this year, the bank will reduce current rates for these loans. This time, however, it will entail an overall cut of 20 basis points.

Accordingly, the interest rate on ten-year fixed-rate mortgages will go from 1.60% to 1.40%. Furthermore, the interest rate on 15-year loans will go from 1.80% to 1.60%. As for 20-year loans, the interest rate will drop to 1.90%.

The interest rate on mixed-rate mortgages will also see an overall reduction of 20 basis points. Thus, the ten-year interest rate will stand at 1.60%, while the 15-year interest rate will be 1.80%. For loans with a 20-year repayment period, a 2.10% interest rate will apply.

These improved rates come as a result of Bankinter’s second rate reduction on fixed and mixed-rate mortgages in just over three months in order to keep up with the downward trend in interest rates.

Borrowing at a fixed interest rate gives homebuyers the advantage that the instalments they must repay remain stable over the term of the loan, irrespective of any changes in the Euribor, a variable reference.

To obtain these prices for Bankinter fixed and mixed-rate mortgages, customers must agree to take on a package of products: salary payment via direct deposit (into an interest-bearing account with a 5% APR the first year and a 2% APR the second year for new customers), a life insurance policy taken out for the full loan amount as well as a home insurance policy. If customers do not acquire any of these products, these rates may increase.

Individuals residing in Spain may request these two types of mortgage for both primary and secondary residences. The only difference is that, with primary residences, loan amounts cannot exceed 80% of the lesser of either the purchase value or the appraisal value, while loan amounts for secondary residences cannot be more than 60% of the lesser of these two values.

Unlike the variable-rate mortgages available, Bankinter’s fixed-rate mortgage has a 1% arrangement fee with a 350 EUR minimum and an early repayment charge of 0.5% for the first five years of the loan term and 0.25% subsequently if the loan is totally or partially repaid and/or assumed by another financial institution. There is also a 0.75% interest rate risk fee that applies only in the event early repayment of the loan causes the bank to incur capital losses.